An entry of Rs. 6,500 was wrongly posted to the Salaries account instead of Machinery account as Salaries are to be capitalized it is an error of principle. Errors of PrincipleAs per the double-entry system, every debit has its corresponding credit. The accounts will be arithmetically correct only if, there is the same amount on both debit and credit sides. The error of principle means recording the transaction violating the accounting policies and procedures. For Example: Treating the purchase of an asset as an expense, is an error of principle. An error of principles is more likely to be committed when an accountant does not have a good understanding of accounting concepts and terms used in accounting. In case of error of principle, there is no effect on the trial balance. This is because the amount is correctly posted on both debit and credit sides but, in incorrect accounts. In the above question an entry of Rs. 6,500 was wrongly posted to the Salaries account instead of the Machinery account which is an error of principleAdditional InformationClerical ErrorsThese types of errors arise due to mistakes committed while performing accounting work. There are three types of errors, as follows: “Errors of Omission: “The error of omission is divided into two parts i. e. , Complete omission of transactions and partial omission of transactions. In case of error of complete omission, a transaction is completely omitted to be recorded in the books of accounts. An accountant forgets to record such entries in the subsidiary books. For Example “ omission to record goods sold to a vendor, omission to record asset purchased, etc. In case of partial omission, the transaction is recorded at the debit side and omitted to be recorded at the corresponding credit side. Partial omissions affect only one account. For Example “ Goods purchased from Mr. X, recorded in the purchase book but no entry was made in Mr. Xs account. Errors of Commission: These types of errors are concerned with arithmetical accuracy. These errors constitute the following errors:-Recording wrong amount in subsidiary booksWrong totaling of subsidiary books. Posting incorrect amounts in ledger accounts. Incorrect totaling of ledger balances. Posting at the wrong side of ledger accounts.